audited financial results of petróleos mexicanos ......pemex pemex audited results report as of...

April 30, 2014

Audited Financial Results of Petróleos Mexicanos, Subsidiary Entities and

Subsidiary Companies as of December 31, 20131

Fourth Quarter (Oct.-Dec.)

2012 2013 Variation

2013 Highlights (Ps. MMM) (U.S.$ MMM)

Total Sales

420.6 409.5 -2.6% 31.3

Total hydrocarbons production averaged 3.7 MMboe, crude oil production decreased by 1.5% and natural gas production increased by 0.8%.

Gross Income

189.8 185.9 -2.1% 14.2

Industrial processes recorded an upward trend with higher production of petroleum products, dry gas and petrochemicals.

Operating Income 202.2 136.5 -32.5% 10.4

The average price of the Mexican crude oil basket decreased by 4.7%, from U.S.$96.36 to U.S.$91.84.

Income before Taxes and Duties

185.9 128.8 -30.7% 9.8

The average price of regular gasoline in the U.S. Gulf of Mexico decreased 2.4%, from U.S.¢280.12 to U.S.¢273.40.

Taxes and Duties 214.6 206.3 -3.9% 15.8 Taxes and duties represented 160% over income before taxes and duties.

Net Income (Loss) (28.8) (77.5) (5.9)

EBITDA amounted to Ps. 197.9 billion (U.S.$15.1 billion)

Acronyms used: billion (MMM), million (MM), thousand barrels per day (Mbd), million barrels of oil equivalent (MMboe), million cubic feet per day (MMcfd), thousand tons (Mt).

Uses and Sources as of December 31, 2013

(Ps. MM)

(1) Before taxes.

(2) Excludes Financed Public Works Contract Program.

(3) Includes the change of cash effect accounting for Ps. 5,112 million and equity increase by the Federal Government adjustments accounting for Ps. 1,583

million.

1 PEMEX is providing this report to publish its audited financial and operational results for the fourth quarter of 2013 and for the year ended 2013. PEMEX encourages the reader to analyze

this report together with the information provided in the Annexes hereto. Annexes and relevant documents related can be found at www.ri.pemex.com.

119,235

193,028

155,546

549,218

80,746

(96,779) (37,133)

(244,196)

(2,691)

81,410 (94,336)

Cash at theBeginning of the

Year

Revenues fromOperations

FinancingActivities

AvailableCashflow

DebtPayments

InterestPaid

Investments Taxes Cash at the endof the Period

Petroleos Mexicanos debt

PMI debt

1 3 2

236,956 (191,145)

http://www.ri.pemex.com/

PEMEX

PEMEX Audited Results Report as of December 31, 2013 2 / 34 www.pemex.com

Operating Results

Fourth quarter (Oct.-Dec.) Year ended Dec. 31,

2012 2013 Change 2012 2013 Change

Upstream

Total hydrocarbons (Mboed) 3,703 3,668 -0.9% (35) 3,697 3,653 -1.2% (45)

Liquid hydrocarbons (Mbd) 2,594 2,566 -1.1% (28) 2,588 2,564 -1.0% (25)

Crude oil (Mbd) 2,561 2,523 -1.5% (37) 2,548 2,522 -1.0% (26)

Condensates (Mbd) 33 43 29.7% 10 41 42 2.6% 1

Natural gas (MMcfd)(1) 6,363 6,416 0.8% 52 6,385 6,370 -0.2% (14)

Downstream

Dry gas from plants (MMcfd)(2) 3,494 3,660 4.8% 166 3,628 3,693 1.8% 65

Natural gas liquids (Mbd) 333 364 9.5% 31 365 362 -1.0% (4)

Petroleum products (Mbd)(3) 1,305 1,337 2.5% 32 1,337 1,386 3.7% 49

Petrochemical products (Mt) 1,138 1,291 13.5% 154 3,712 4,160 12.1% 448

(1) Includes nitrogen.

PEMEX

Main Statistics of Production

(2) Does not include dry gas produced by Pemex-Refining and used as fuel by this subsidiary entity.

(3) Includes LPG from Pemex-Gas and Basic Petrochemicals, Pemex-Exploration and Production and Pemex-Refining.

Upstream 4Q13

Crude Oil Production

During the fourth quarter of 2013, total crude oil production averaged 2,523 Mbd, a 1.5% decrease as compared to the same period of 2012. This decrease was primarily due to:

a 2.4% decrease in production of heavy crude oil due to an increase in the fractional water flow of wells and a natural decline in production at the fields of the Cantarell Asset in the Northeastern Marine region; and

a 6.4% decrease in production of extra-light crude oil, primarily due to a natural decline in production at the Delta del Grijalva project in the Southern region, as well as an increase in the fractional water flow of wells of the Pijije and Sen projects in the Southern region.

The previous was partially offset by a 2.0% increase in light crude oil production at the Kuil, Onel, Chuhuk and Tsimsin fields in the Southwestern Marine region, at the Kambesah field in the Northeastern Marine region and at the Gasífero field in the Northern region. We would highlight that the Kuil and Gasífero fields began their production during the second half of 2012, the Kambesah and Onel fields began their production during the first quarter of 2013, and the Chuhuk field began its production during the second quarter of 2013. As of December 2013, this group of fields reached an average production of 171 Mbd.

PEMEX


Crude Oil Production (Mbd)

Crude Oil Production by Region

4Q13

Crude Oil Production by Field

(Mbd)

Natural Gas Production

During the fourth quarter of 2013, natural gas production increased by 1.6%2, as compared to the same quarter of 2012, primarily as a result of a 6.5% increase in associated gas production at the Ku-Maloob-Zaap Asset in the Northeastern Marine region, at the Abkatún-Pol-Chuc Asset in the Southwestern Marine region, and at the Bellota Jujo Asset in the Southern region. This increase was partially offset by an 8.8% decline in non-associated gas production during the period caused by a scheduled reduction in drilling activities and the completion of wells of the Veracruz and Burgos Assets in the Northern region.

2 Does not include nitrogen.

54% 54% 55% 54% 53%

33% 33% 33% 34% 34%

13% 13% 12% 12% 12%

2,561 2,544 2,516 2,506 2,523

4Q12 1Q13 2Q13 3Q13 4Q13

Heavy Light Extra-light

0

20

40

60

80

100

120

140

160

180

Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13

Gasifero

Kambesah

Chuhuk

Onel

Tsimin

Kuil

75%

25%

Offshore Onshore

PEMEX


Natural Gas Production (MMcfd)

Natural Gas Production by Asset (MMcfd)

Natural Gas Production by Type of Field

4Q13

Gas Flaring During the fourth quarter of 2013, gas flaring increased by 18 MMcfd, primarily due to:

installations made at the Akal-J2 and Akal-C8 platforms of the Cantarell Asset in the Northeastern Marine region; and

programmed maintenance at plant number 1 of the Cd. Pemex Gas Processing Center in the state of Tabasco.

As a result, the natural gas use as a percentage of production was 96.9% during the fourth quarter of 2013.

Gas Flaring

68% 67% 68% 70% 72%

32% 33% 32% 30% 28%

5,664 5,769 5,558 5,635 5,754

4Q12 1Q13 2Q13 3Q13 4Q13

Associated Non-Associated

162 85 108 121

180

2.9%

1.5% 1.9% 2.1%

3.1%

4Q12 1Q13 2Q13 3Q13 4Q13

Gas Flaring (MMcfd) Gas Flaring / Total Gas Produced

-

800

1,600

2,400

3,200

4,000

4,800

5,600

6,400

4Q12 1Q13 2Q13 3Q13 4Q13

Other

Cantarell

Abkatún-Pol Chuc

Veracruz

Samaria-Luna

Litoral de Tabasco

Burgos

33%

21%

12%

9%

7%

10%

9%

5,754

36%

64%

Offshore Onshore

PEMEX


Operational Infrastructure

During the fourth quarter of 2013:

the average number of operating wells increased to 9,716, an increase of 20 wells as compared to the average number of operating wells for the same quarter of 2012;

the completion of development wells decreased by 160, due to a programmed reduction of activities at the Aceite Terciario del Golfo (ATG), Burgos and Poza Rica-Altamira projects in the Northern region. We would highlight that 7 horizontal wells began operating during the fourth quarter of 2013 at the ATG Asset. These wells have yielded an initial average production of 500 bd, and have stabilized at an average production of nearly 200 bd. These results considerably contrast with those of conventional wells, where the average production at the same project ranges at 20-30 bd. The higher productivity of these horizontal wells is due to a strategy based on creating multiple fractures (equal to or above 10 fractures); and

the completion of exploratory wells increased by 3, due to an increase in exploration activities at the Burgos and Tampico Misantla-Golfo projects.

Average Number of Operating Wells Average Operating Wells by

Type of Field

4Q13

Completed Wells

6,437 6,632 6,501 6,468 6,435

3,259 3,350 3,314 3,363 3,281

9,696 9,983 9,816 9,831 9,716

4Q12 1Q13 2Q13 3Q13 4Q13

Crude oil Non-Associated Gas

329

255

187 174 169

15

4

7 9 18

344

259

194 183 187

4Q12 1Q13 2Q13 3Q13 4Q13

Development Exploration

6%

94%

Offshore Onshore

PEMEX


Average Number of Operating Drilling Rigs

Average Drilling Rigs by Type 4Q13

Seismic Information

During the fourth quarter of 2013, PEMEX acquired additional 2D seismic data by focusing its two-dimensional acquisition efforts on the location of shale resources. In fact, 525 km of 2D seismic were acquired in the Burgos basin (from the Sur de Burgos 2D study) and 609 km were acquired in the Southeastern basin (from the Zapatero Pénjamo and Sal Somera 2D studies). In addition, PEMEX acquired 2,371 km2 of 3D seismic data through three-dimensional information, of which a total of 2,235 km2 related to exploratory activities and 136 km2 related to information acquisition aimed at optimizing the exploitation of hydrocarbons.

Seismic Information

138 132 147 142

96

15 17

21 23

21

153 149

169 165

117

4Q12 1Q13 2Q13 3Q13 4Q13

Development Exploration

47%

53%

Development

Offshore Onshore

35%

65%

Exploration

Offshore Onshore

1,226 550

1,098 864

1,134

6,791

5,374

4,210

3,108 2,371

-

2,000

4,000

6,000

8,000

100

900

1,700

2,500

3,300

4,100

4,900

5,700

4Q12 1Q13 2Q13 3Q13 4Q13

Km

2

Km

2D (Km) 3D (Km )2

PEMEX


Discoveries and New Developments

During the fourth quarter of 2013, PEMEX made discoveries that confirmed the production potential of the Southeastern basin, as well as the presence of hydrocarbons in the deep waters of the Gulf of Mexico through the Perdido Area project, and of shale resources located primarily in the northeastern portion of the country.

Project Well Geologic age Type of hydrocarbon

Crude &

condensates

(bd)

Gas

(MMcfd)

Burgos Chucla-1 Late Cretaceous Eagle Ford 24 1.9 Wet Gas

Gato-1001 Early Cretaceous La Virgen 0 1.0 Dry Gas

Santa Anita-401 Eocene Queen City 90.2 5.9 Wet Gas

Durián-1 Late Cretaceous Eagle Ford 0 1.9 Dry Gas

Lempira-1 Oligoceno Frio Marino no Marino 24 2.5 Wet Gas

Silo-1 Oligoceno Frio Marino 0 2.7 Dry Gas

Nuncio-1 Late Jurassic Pimienta 0 3.0 Dry Gas

Gamma-1 Late Cretaceous Eagle Ford 12 0.3 Wet Gas

Tangram-1 Late Jurassic Pimienta 0 10.9 Dry Gas

Kernel-1 Late Jurassic Pimienta 0 2.9 Dry Gas

Veracruz Eltreinta-1 Middle Miocene 756 0.3 Light Crude Oil

Kamelot-1 Early Pliocene 0 6.6 Dry Gas

Mixtan-1 Early Miocene 67 4.2 Wet Gas

Poza Rica-Altamira Maximino-1 Early Eocene Wilcox 3,796 15.0 Light Crude Oil

Exploratus-1 Early Oligocene - - Heavy Oil

Vespa-1 Middle-Late Miocene 2,366 2.3 Heavy Oil

Litoral de Tabasco Xux-1DL Middle-Late Cretaceous 1922 1.9 Light Crude Oil

Miztón-1 Middle Pliocene 3512 3.0 Light Crude Oil

Piklis-1DL Early Miocene 141 35.1 Wet Gas

Samaria-Luna Sini-1 Late Jurassic Kimmeridgian 3,089 7.8 Light Crude Oil

Tamarhu-1 Late Jurassic Kimmeridgian 114 0.4 Light Crude Oil

Cinco Presidentes Calicanto-101 Middle Miocene 602 0.3 Heavy Oil

Ayocote-0 Late Miocene - - Light Crude Oil

Macuspana-Muspac Arroyo Zanapa-201 Middle-Late Cretaceous 345 - Light Crude Oil

Ku-Maloob-Zaap Tson-201 Late Jurassic Kimmeridgian 2,907 0.7 Heavy Crude Oil

Total 19,767 110.5

PEMEX

Main discoveries 2013

Initial production

PEMEX


Upstream 2013

During 2013, PEMEX faced operating challenges in its exploration and production activities that nowadays have become characteristic for the industry worldwide, including greater complexity, decreased volumes and higher technological and capital requirements.

Crude Oil Production

During 2013, crude oil production totaled 2,522 Mbd, a decrease of 26 Mbd as compared to 2012, primarily due to:

a 1.4% decrease in production of heavy crude oil due to a natural decline in production of fields in the Cantarell Asset, and an increase in the fractional water flow of its wells; and

a 5.7% decrease in production of extra-light crude oil, primarily due to a natural decline in production of fields of the Delta del Grijalva and Crudo Ligero Marino projects.

This decrease was partially offset by a 1.6% increase in light crude oil production at the Kuil, Onel and Chuhuk fields of the Abkatún-Pol Chuc Asset and the Tsimín field of the Litoral de Tabasco Asset in the Southwestern Marine region, at the Kambesah field of the Cantarell Asset in the Northeastern Marine region and at the Gasífero field of the Veracruz Asset in the Northern region.

Natural Gas During 2013, natural gas production remained stable, totaling 5,679 MMcfd, primarily due to an increase in associated gas production at the Ku Maloob Zaap, Abkatún-Pol-Chuc and Burgos Assets, highlighting the development of the Nejo field in Burgos. This increase was partially offset by a decrease in non-associated gas production due to a natural decline in production at the fields of the Veracruz asset.

Gas Flaring During 2013, gas flaring represented 2.2% over total gas produced. As a result, the natural gas use as a percentage of production was 97.8% during the year. In addition, during 2013, average gas flaring was approximately 124 MMcfd, which was well below the maximum gas flaring limit of 214.8 MMcfd set by the National Hydrocarbons Commission in an effort to reduce gas flaring.

Operational Infrastructure

During 2013, PEMEX continued to focus its drilling strategy on a more intensive use of technology and state of the art equipment, in order to improve efficiency and generate increased value, which resulted in the following developments:

the average number of operating wells increased by 397, as compared to 2012.

the completion of wells decreased by 415, due to a programmed reduction of activities at the ATG, Burgos and Poza Rica-Altamira projects in the Northern region. We would highlight that 36 horizontal wells were brought into stream during 2013 at the ATG Asset. As a result, by year-end the number of non-conventional wells operating at ATG increased to 44. These wells represent 1.7% of the total operating wells of this asset, yet contribute 14% of its total production. In other words, by innovating and developing technology, PEMEX has been able to implement more efficient exploitation strategies at one of the most promising regions of Mexico in terms of production potential, but also one of the most geologically complex regions; and

the completion of exploratory wells amounted to 38 wells, due to an increase in exploration activities at the Burgos and Tampico Misantla-Golfo projects.

PEMEX


Seismic Information

During 2013, 2D seismic data acquisition increased by 4.0%, as compared to 2012. PEMEX acquired additional 2D seismic data by focusing its two-dimensional acquisition efforts on the location of shale resources through the Sur de Bugos 2D study, and on the Southeastern basins, through the Zapatero Pénjamo study. While 3D seismic data acquisition decreased due to the transition from the acquisition stage to the interpretation stage of zones identified as possible producers.

Discoveries During 2013, PEMEX focused its exploration activities in the following producer prospects:

i) Southeastern Basin:

— the Xux-1DL, Miztón-1, Sini-1 and Tson-201 wells, whose initial production was 2.8 Mbd, confirmed the production potential of these formations and expanded the exploitation areas of their respective fields.

ii) Deep Waters:

— The Maximino-1 and Exploratus-1 wells, confirmed the production potential of this region in the deep waters of the Gulf of Mexico. We would highlight that the Maximino-1 well is the deepest well ever drilled in Mexico, located at water depths of 2,919 meters, again proving the company’s ability to develop capabilities in new and highly complex producer regions.

— Moreover, important progress was made in the Lakach project with the completion of the Lakach-21 well, which is the first development well in the deep waters of Mexico. Lakach is a non-associated gas producer field holding total reserves of 850 MMMcf of gas; its exploitation is expected to begin by the end of 2014.

iii) Shale Resources:

— Exploration efforts continued in the northeastern portion of the country, especially in the Burgos basin, to obtain more information on the production potential of shale resources in this region. The success of exploratory activities in the Burgos basin confirms the existence of producer zones and geologic eras that stretch from the United States into Mexican territory, including the Eagle Ford formation.

Upstream Projects

Construction of Drilling Rigs in Altamira

On October 4, 2013, Petróleos Mexicanos signed a memorandum of understanding with Keppel Offshore & Marine, a worldwide leading company in the design and construction of mobile offshore drilling rigs, to build a shipyard specializing in the construction, maintenance and overhaul of rigs and other major marine vessels. The shipyard, which will be located in Altamira, Tamaulipas, will initially serve as the construction site for six Keppel-designed jackup rigs and later house the equipment necessary for the maintenance of marine platforms.

Acquisition of 51% Stake in Hijos de J. Barreras

On November 26, 2013, P.M.I. Holdings B.V., PEMEX’s international trading arm, signed an agreement to purchase a 51% stake in Spanish shipbuilder Hijos de J. Barreras, S.A. The purpose of this transaction is to develop Petróleos Mexicanos’ capacity to build specialized vessels in Mexico in the medium-term, and to benefit from the experience of the Spanish shipbuilding industry in the long-term.

PEMEX


Flotels On January 28, 2014, Pemex-Exploration and Production awarded P.M.I. Norteamérica, S.A. de C.V. (“PMI”), a 10-year contract (from July 2016 to July 2026) for housing and accommodation services in connection with two flotel units.

PEMEX


Downstream 4Q13

Crude Oil Processing

During the fourth quarter of 2013, total crude oil processing decreased by 2.1%, as compared to the same period of 2012, primarily explained by:

programmed maintenance cycles; and

non-programmed overhaul works.

The ratio of heavy crude oil to total crude oil processed by the National Refining System (NRS) increased by 2.7 percentage points, primarily as a result of the increase of Maya crude oil processed at the Minatitlán refinery. PEMEX’s usage of its primary distillation capacity decreased by 1.1 percentage points, due to programmed maintenance cycles, as well as to non-programmed overhaul projects.

Crude Oil Processing (Mbd)

Production of Petroleum Products

During the fourth quarter of 2013, total petroleum products output increased by 2.5%, as compared to 2012, due to an increase in production of automotive gasolines, diesel and liquefied petroleum gas (LPG), while fuel oil production dropped by 20 Mbd. The previous is primarily due to the fact that the Minatitlán refinery came into operation and to the stabilization of its processes, which thereby increased the output of greater value-added products.

Petroleum Products Production (Mbd)

721 741 786 718 674

464 495 512

478 485

1,185 1,235 1,298

1,196 1,158

4Q12 1Q13 2Q13 3Q13 4Q13

Light Crude Heavy Crude

415 425 462 437 425

257 283 298 258 237

295 303 340

305 306

193 207

206 208 203

57 63

61 57 63

89 98

101 96 103

1,305 1,379 1,468 1,361 1,337

4Q12 1Q13 2Q13 3Q13 4Q13

Other*

Jet Fuel

LPG

Diesel

Fuel oil

Automotive gasolines

* Includes paraffins, furfural extract, aeroflex, asphalt, lubricants, coke, cyclical light oil and other gasolines.

PEMEX


Variable Refining Margin

During the fourth quarter of 2013, PEMEX’s NRS recorded a negative variable refining margin of U.S.$1.40 per barrel, U.S.$5.49 per barrel below the margin recorded during the fourth quarter of 2012. This decrease was primarily due to the fluctuation of crude oil and derivatives prices in the international markets, as the volume of distillates production increased during the period as compared to the same period of 2012.

Variable Refining Margin (U.S.$/b)

Natural Gas Processing and Production

During the fourth quarter of 2013, natural gas processing increased by 6.6%, in response to the increased availability of sour wet gas from the marine regions, as well as an increased supply of sweet wet gas from the Northern region. Condensates processing increased by 25.8%, as compared to the fourth quarter of 2012, due to an increase in the supply of sweet condensates in the Northern region, as well as to increased availability of sour condensates in the marine regions. As a result, dry gas production increased by 4.8% or 166 MMcfd, as compared to the fourth quarter of 2012, while natural gas liquids production increased by 9.5%, or 31 Mbd, during the period.

Natural Gas Processing

(MMcfd)

4.08

1.27

-5.09 -1.94 -1.40

4Q12 1Q13 2Q13 3Q13 4Q13

3,284 3,334 3,164 3,409 3,411

850 1,148

1,089 1,061 998

4,134 4,481

4,253 4,471 4,409

4Q12 1Q13 2Q13 3Q13 4Q13

Sour Wet Gas Sweet Wet Gas

PEMEX


Dry Gas and Natural Gas Liquids Production

Petrochemicals Production

During the fourth quarter of 2013, the production of petrochemical products increased by 13.5%, or 154 Mt, as compared to the same period of 2012, primarily due to the following:

a 66 Mt increase in production in the aromatics and derivatives chain due to the stabilization of the continuous catalytic regeneration (CCR) plant and regularized operations of plants involved in the production of aromatics at the Cangrejera complex. The increase in production in this chain also resulted in an increase in production of other petrochemicals, including benzene, toluene and xylene (BTX);

a 4 Mt increase in production in the ethane derivatives chain due to an increased output of ethylene and high-density polyethylene; and

a 19 Mt increase in production in the propylene and derivatives chain, due to greater production of propylene and to the stabilization of the acrylonitrile producer plant.

This increase was partially offset by a 14 Mt decrease in production in the methane derivatives chain, mainly of ammonia, in response to a decline in demand for this product as a result of adverse weather conditions that impacted agricultural zones in the northeastern portion of the country.

Petrochemicals Production (Mt)

3,494

3,759

3,600

3,755

3,660

333

361 354 368 364

310

340

370

400

430

460

490

520

3,200

3,400

3,600

3,800

4Q12 1Q13 2Q13 3Q13 4Q13

Mbd

MM

cfd

Dry Gas from Plants (MMcfd) Natural Gas Liquids (Mbd)

(1) Includes condensates processing.

1

9 9 18 20 13

323 347 343 350 309

253 306 336 248 258

75 83

146 175

140 111

92 110

112 130

367 445

518 507

441

1,138

1,282

1,471 1,412

1,291

4Q12 1Q13 2Q13 3Q13 4Q13

Other*

Propylene and Derivatives

Aromatics and Derivatives

Ethane Derivatives

Methane Derivatives

Basic

*Includes muriatic acid, butadiene, polyethylene wax, petrochemical specialities, BTX liquids, hydrogen, isohexane, pyrolysis liquids, oxygen, CPDI, sulfur, isopropyl alcohol, amorphous gasoline, octane basis gasoline and heavy naphtha.

PEMEX


Downstream 2013

During 2013, there was an upward trend in crude oil and natural gas processing, as well as in the production of dry gas, petroleum products and petrochemicals, as a result of the revamping of plants and the modernization of operating processes aimed at safety, reliability and value creation.

Crude Oil Processing

During 2013, total crude oil processing amounted to 1,222 Mbd, a 1.9% increase as compared to 2012, primarily explained by the increase in crude oil processed at the Minatitlán refinery, which resulted from the improved operating performance of the plants that were overhauled at this refinery. The ratio of heavy crude oil to total crude oil processed by the NRS was 40.3%, as part of an effort to reduce and dislodge the production of heavy distillates in PEMEX’s refineries in the central part of the country. As a result, during 2013, PEMEX’s usage of its primary distillation capacity increased by 1.5 percentage points, as compared to 2012, to 73.1% of its total capacity.

Production of Petroleum Products

During 2013, total petroleum products output increased by 3.7%, as compared to 2012, mainly due to increases in the output of products such as automotive gasolines, diesel and jet fuel, while recording a drop in fuel oil production. The NRS’s operating performance has improved as a result of an increase in heavy crude oil processing, a greater output of lighter and middle distillate products as well as greater usage of its capacity. Nevertheless, by the end of 2013, the NRS recorded a negative variable refining margin of U.S.$1.84 per barrel, from U.S.$0.01 per barrel by the end of 2012. This is broadly explained by the behavior of prices of oil and refined products.

Natural Gas Processing and Production

During 2013, natural gas processing increased by 0.5%, as compared to 2012, in response to the increased availability of sweet wet gas from the Northern region. In addition, condensates processing increased by 1.3%, due to an increase in the supply of sweet condensates in the Northern region. As a result, dry gas production increased by 1.8% or 65 MMcfd, while natural gas liquids production recorded a decrease of 1.0%, due to a decrease in the supply of sour wet gas in the marine regions.

Petrochemicals Production

During 2013, the production of petrochemical products amounted to 5,455 Mt, a 12.5% increase as compared to 2012. This increase is primarily explained by a 442 Mt increase in production in the aromatics and derivatives chain due to the stabilization of the CCR plant and regularized operations of plants involved in the production of aromatics at the Cangrejera complex. The increase in production in this chain also resulted in an increase in production of other petrochemicals, including hydrogen, pentanes and BTX. This increase was partially offset by:

a 18 Mt decrease in production in the methane derivatives chain, mainly of ammonia, in response to a decline in demand for this product, as a result of adverse weather conditions that impacted agricultural zones in the country;

a 136 Mt decrease in production in the ethane derivatives chain due to the fact that production from the Pajaritos Petrochemical Complex was transferred to the joint venture between Pemex- Petrochemicals and the company, Petroquímica Mexicana de Vinilo, S.A. de C.V. in September 2013. As a result, vinyl chloride and ethylene production is no longer

PEMEX


on our records. Additionally, linear low-density polyethylene production decreased due to non-programmed shutdowns; and

a decrease in production in the propylene and derivatives chain, due to lower production of propylene, which was partially offset by an increase in the production of acrylonitrile.

Downstream Projects

Supply of Natural Gas

On August 13, 2013, the Federal Government of Mexico and Petróleos Mexicanos announced the Natural Gas Supply Strategy, which features several infrastructure projects aimed at securing the safe and reliable supply of natural gas in the short-, medium- and long-term. In the short-term, PEMEX plans to import at least 3 MMMcfd of liquefied natural gas (LNG) per month through the Manzanillo and Altamira seaports. The shipments received during 2013 were distributed between Pemex-Gas and Basic Petrochemicals (PGPB) and the Federal Electricity Commission (CFE), while 2014 cargoes will be used solely by PGPB. In the medium-term, a 500 MMcfd gas compression station will be constructed in Altamira which will be connected to the 48-inch Cactus-San Fernando pipeline, thereby linking the state of Tamaulipas to the southern border of the United States. In the long-term:

the following gas pipelines will be constructed: (i) Los Ramones Phase I, (ii) Los Ramones Phase II, (iii) Agua-Dulce Frontera and (iv) Tucson-Sásabe; and

a 190 MMcfd gas compression station in Soto La Marina, Tamaulipas will be constructed.

The CFE will be developing the Sásabe-Guaymas, Tamazunchale-Sauz and Mayakan gas pipelines as an additional component of the Natural Gas Supply Strategy.

Los Ramones Gas Pipeline Project

The Los Ramones gas pipeline project represents Mexico’s biggest energy infrastructure investment in the last 40 years, and is expected to meet approximately 20% of the country’s demand for natural gas. The first stage of the Los Ramones gas pipeline project will run along the municipalities of Camargo, Tamaulipas and Los Ramones, Nuevo León. The pipelines will have a transportation capacity of up to 1,000 MMcfd once they begin operations in December 2014, and will increase to 2,100 MMcfd by December 2015. The Mexican company Tubacero will be the supplier of 48-inch pipes for the construction of the 115-kilometer (km) gas pipeline. On July 21, 2013, PEMEX signed a 25-year contract with Gasoductos del Noreste, a division of Grupo Gasoductos de Chihuahua that will provide natural gas transportation services for the first stage of the Los Ramones pipeline project. This phase of the pipeline is expected to begin operations in December 2014. The second stage of the Los Ramones gas pipeline project will extend over 740 km and run across Los Ramones, Nuevo León and Apaseo el Alto, Guanajuato. The pipeline will carry up to 1,430 MMcfd of natural gas starting in December 2015. The financial and legal schemes for the second stage of the Los Ramones gas pipeline project will be defined in the following months to fuel the development of the project, after Pemex- Gas and Basic Petrochemicals (PGPB) voided the tender on October 15, 2013. The consortium formed by Enagás and GDF Suez was the only bid offer and did not comply with the project’s technical requirements.It is important to note that PGPB’s awarding decision on the project’s execution will be grounded on complying with pre-established deadlines. As a result, the Los Ramones – Apaseo el Alto pipelines should begin operations by December 2015.

PEMEX


Clean Fuels Program

In September 2013, a new plant at the Cadereyta refinery in the state of Nuevo León began operating as part of the Clean Fuels Project. The plant will produce 42.5 Mbd of ultra-low sulfur gasoline (ULSG), thereby complying with the environmental protection standards for fossil fuels set forth in the Norma Oficial Mexicana 086 (Official Mexican Standard 086), as well as with international environmental standards. The production of ULSG will facilitate the introduction of cleaner and more modern automotive technology, which will help decrease vehicular carbon monoxide and nitrogen oxide emissions by approximately 50 to 80 percent. Moreover, the new Cadereyta plant will be able to produce gasoline that contains approximately 30 parts per million (ppm) of sulfur, as compared to the 800 ppm of sulfur contained in the gasoline that is currently being produced.

Cogeneration Plant in the Gas Processing Complex of Nuevo Pemex

Commercial operations of the electric cogeneration plant began on April 19, 2013, at the Gas Processing Center Nuevo Pemex. This plant produces energy by transforming water into vapor, and electricity from natural gas. In addition, it supplies 190 work centers and will represent savings of more than U.S.$150 million per year for the company. Moreover, this plant will substitute less efficient equipment at the end of its useful lifetime, thereby reducing carbon dioxide gas emissions (CO2) as well as maintenance costs. The plant will produce 300 megawatts per hour, equivalent to 14% of PEMEX’s total installed electricity generation capacity.

Fleet Renewal In January, March and April, 2013, PEMEX received four tankers: the Centla, the Jaguaroundi, the Texistepec and the Rarámuri, which were constructed under the highest environmental and technological standards. These vessels reduce the age of PEMEX’s fleet, currently comprised of 19 tankers, and can each store up to 302 Mb, thereby increasing the fleet’s capacity.

Purchase and Revamp of Fertilizing Plant

On January 16, 2014, PMI signed an agreement to purchase and revamp assets belonging to the Agro Nitrogenados, S.A. de C.V., including a closed fertilizer production facility in Pajaritos, Veracruz. This new plant is expected to produce 990 Mt of urea per year. The project requires an investment of up to U.S.$475 million, which includes the purchase price of current assets, as well as the cost of revamping and renewing the plant. The expected level of production of urea represents approximately 75% of national demand for urea. Ammonia, one of the main inputs for the production of urea, will be supplied by PEMEX’s petrochemical complex in Cosoleacaque, Veracruz, located just 28 kilometers from the Agro Nitrogenados facilities.

Construction of a Solidifying Sulfur Plant

PMI will construct Mexico’s first solidifying sulfur plant in order to guarantee the distribution of sulfur from its refineries and gas processing complexes nationwide. The plant will be located in the Gulf coast port of Coatzacoalcos, in the state of Veracruz, and will have processing capacity of 360 Mt per year and an estimated cost of more than Ps. 500 million.

Operating Improvement Program

The Operating Improvement Program’s main goal is to reverse current results of refining processes in the short-term, and to establish an ongoing improvement program in the long-term. The program aims to implement operational practices that positively impact results, strengthen the reliability of plants, guarantee the supply of production inputs and spare parts and improve the plants’ operations from a managerial and organizational standpoint. By the end of 2013, 377 opportunities for improvement were identified, 180 of which have been implemented and are expected to generate savings of U.S.$1.3 billion. In order to successfully carry out this program, each refinery has prioritized its initiatives and uses a monitoring system based on operations data and process simulators to verify and quantify the potential impact of such initiatives. This program has been developed and implemented in

PEMEX


conjunction with McKinsey and KBC.

Gas Stations As of December 31, 2013, a total of 10,416 gas stations have been recorded, an increase of 4.0% as compared to the same period of 2012.

Environmental Protection

Certified Emissions Reductions (CERs)

By the end of 2013, PEMEX signed three emissions reduction purchase agreements for the marketing of CO2 emissions-reduction certificates. The implementation of these agreements through three projects is expected to result in an annual decrease of approximately 500 Mt of CO2. The first two projects were registered by the United Nations and will be carried out by Pemex-Exploration and Production, while the third project, which remains under evaluation, will be carried out by Pemex-Refining.

Nationally Appropriate Mitigation Actions (NAMA)

In 2013, PEMEX registered the first two NAMA programs with the United Nations. The first program is focused on the reduction of “fugitive emissions”3 in the Natural Gas Processing, Transport and Distribution System, and the second is focused on energy cogeneration. Each program has the potential to reduce CO2 emissions by approximately 10 MMt per year.

Cangrejera and Morelos Cogeneration

PEMEX received funding from the government of Japan to carry out feasibility studies at the Cangrejera and Morelos cogeneration plants. These studies were concluded in May 2013 and represent the first step towards a possible bilateral agreement between Mexico and Japan for CO2 emissions reduction projects.

Tax on Fossil Fuel

During 2013, a tax on fossil fuels was approved as part of the IEPS4 Law, which establishes a payment system for this new tax. In 2014, PEMEX will be able to use carbon credits from registered Clean Development Mechanism (CDM) projects to pay for the fossil fuels tax.

Actions against the Illicit Fuels Market

Government Support

During 2013, PEMEX’s actions against the illicit market in fuels were strengthened by the continuous support of the armed forces in connection with collaborative agreements with the Ministry of National Defense and the Ministry of the Navy to conduct surveillance of the national pipeline system. In addition, PEMEX continues to collaborate with various government entities, primarily state government representatives, the Federal Police, the Federal Attorney General’s Office, the Ministry of Finance, the Tax Management Service and the Ministry of Energy, among others, in order to foster the exchange of information and to support the training of specialized investigatory groups.

Measures Taken

In order to combat the illicit market in fuels and to limit its harmful impact on communities, all reports of illegal activity are handled by State Civilian Protection units; this effort has been combined with an open communications strategy as part of an advertising campaign against the illicit market in fuels. In addition, regular meetings have been held with state government representatives and various government entities to bring together intelligence groups whose investigations help to dismantle criminal groups and combat illicit activities that damage the petroleum industry and related parties.

3 Intentional or unintentional release of greenhouse gases (GHG) during extraction, processing and or delivery activities of fossil fuels to its final destination. 4 Special Tax on Production and Services.

PEMEX


Financial Results

Sales During the fourth quarter of 2013, sales revenues decreased by 2.6%, as compared to the same quarter of 2012, primarily as a result of:

a 65.5% decrease in fuel oil domestic sales, primarily due to a 53.3% reduction in sales volume and a decline of 7.3% in its price;

a 4.6%, or Ps. 8.4 billion pesos decrease in exports, mainly due to a 4.7% decline in the average price of the Mexican crude oil basket, from U.S.$96.36 per barrel in the fourth quarter of 2012, to U.S.$91.84 per barrel in the same period in 2013. As well as by a 5.4% decrease in the volume of crude oil exports, amounting to 1,234 Mbd.

These decreases were partially offset by:

a 10.0% increase in domestic sales of gasoline, excluding the accrued amount of IEPS credit5; and

a 20.6% increase in domestic sales of gas, mainly due to a 77.0% rise in its price.

5 Including the accrued amount of IEPS credit, domestic sales of gasoline recorded a 16.8% decrease, primarily as a result of a 2.4% decrease in the average price of regular gasoline in the U.S. Gulf of Mexico, from U.S.¢280.12 to U.S.¢273.40.

Fourth quarter (Oct.-Dec.) Year ended Dec. 31,

2012 2013 Change 2013 2012 2013 Change 2013

(Ps. MM) (U.S.$MM) (Ps. MM) (U.S.$MM)

Total sales 420,603 409,494 -2.6% (11,108) 31,315 1,646,912 1,608,205 -2.4% (38,708) 122,984

Domestic sales 235,463 231,610 -1.6% (3,853) 17,712 867,037 910,188 5.0% 43,151 69,605

Exports 183,316 174,959 -4.6% (8,357) 13,380 772,699 687,678 -11.0% (85,021) 52,589

Services income 1,823 2,925 60.4% 1,102 224 7,176 10,339 44.1% 3,163 791

Cost of sales 230,758 223,614 -3.1% (7,143) 17,100 832,491 814,006 -2.2% (18,484) 62,250

Gross income 189,845 185,880 -2.1% (3,965) 14,215 814,422 794,198 -2.5% (20,223) 60,735

Other revenues (expenses) 46,607 (16,134) -134.6% (62,741) (1,234) 209,019 64,527 -69.1% (144,492) 4,935

IEPS accrued 49,746 15,142 -69.6% (34,604) 1,158 214,102 94,466 -55.9% (119,636) 7,224

Other (3,138) (31,276) -896.6% (28,138) (2,392) (5,084) (29,939) -488.9% (24,856) (2,290)

Transportation and distribution expenses 8,253 8,717 5.6% 464 667 28,488 32,448 13.9% 3,960 2,481

Administrative expenses 26,004 24,548 -5.6% (1,456) 1,877 89,613 98,654 10.1% 9,042 7,544

Operating income (loss) 202,195 136,481 -32.5% (65,714) 10,437 905,339 727,622 -19.6% (177,717) 55,643

Financing income (cost) (16,443) (4,239) 74.2% 12,204 (324) (49,736) (29,540) 40.6% 20,197 (2,259)

Foreign exchange profit (loss) (2,599) (4,254) -63.7% (1,655) (325) 44,846 (3,951) -108.8% (48,797) (302)

Profit (loss) sharing in non-consolidated

subsidiaries, affiliates and others 2,734 861 -68.5% (1,872) 66 4,798 707 -85.3% (4,091) 54

Income before taxes and duties 185,886 128,849 -30.7% (57,037) 9,853 905,246 694,838 -23.2% (210,409) 53,136

Taxes and duties 214,646 206,323 -3.9% (8,323) 15,778 902,646 864,896 -4.2% (37,750) 66,141

Duties over hydrocarbon extraction and other 212,118 204,815 -3.4% (7,303) 15,663 898,065 856,979 -4.6% (41,086) 65,536

Oil income tax 1,113 1,731 55.4% 617 132 2,442 3,604 47.6% 1,162 276

Income tax and other 1,415 (223) -115.8% (1,638) (17) 2,139 4,313 101.7% 2,174 330

Net income (loss) (28,761) (77,474) -169.4% (48,713) (5,925) 2,601 (170,059) -6639.3% (172,659) (13,005)

Other comprehensive results (363,896) 251,115 169.0% 615,011 19,204 (376,775) 254,272 167.5% 631,047 19,445

Financial assets available for sale (1,560) 1,116 171.6% 2,676 85 (10,126) 4,453 144.0% 14,579 341

Actuarial losses due to employee benefits (364,879) 247,376 167.8% 612,255 18,918 (364,879) 247,376 167.8% 612,255 18,918

Conversion effect 2,543 2,622 3.1% 79 201 (1,771) 2,442 237.9% 4,213 187

Comprehensive income (loss) (392,656) 173,641 144.2% 566,297 13,279 (374,175) 84,213 122.5% 458,388 6,440

PEMEX

Consolidated Income Statement

PEMEX


Sales Evolution (Ps. MM)

Exports (Ps. MM)

Crude Exports by Region 4Q13

Domestic Sales including IEPS Credit (Ps. MM)

Domestic Sales of Petroleum Products 4Q13

420,603 409,494 (3,853) (8,357) 1,102

4Q12 Domestic Sales Exports ServicesIncome

4Q13

-2.6%

150,915 136,171

13,231 20,201 19,171 18,588

183,316 174,959

4Q12 4Q13

Other

Petroleum Products

Crude Oil andCondensates

-4.6%

78%

11%

9%

2%

United States ofAmerica

Europe

Far East

Rest of the Americas

Total: 1,234 Mbd

263,709 222,818

14,904

17,969

6,597

5,965

285,209

246,752

4Q12 4Q13

PetrochemicalProducts

Dry Gas

Petroleum Products

-13.5%

46%

7%

22%

17%

3% 5%

Gasolines

Fuel oil

Diesel

LPG

Jet Fuel

Other

Total: 1,756 Mbd

PEMEX


Cost of Sales & Operating Expenses

A 3.1% decrease in cost of sales was recorded during the fourth quarter of 2013, as compared to the same period of 2012, primarily due to a 15.2% decline in purchases for resale, due to lower international reference prices and to a decrease in import volumes of refined products.

The previous was partially offset by a 27.2% increase in operating expenses, and an 11.6% increase in preservation and maintenance expenses. In addition, distribution and transportation expenses increased by 5.6%, while administrative expenses decreased by 5.6%. During the fourth quarter of 2013, the net cost of employee benefits recorded under cost of sales and under general expenses decreased by 12.0% due to adjustments to the actuarial calculation method and a fluctuation in the discount rate from 6.90% to 8.45%.

Evolution of Gross Income (Ps. MM)

Other Revenues (expenses)

The sum of other revenues and expenses during the fourth quarter of 2013 represented a Ps. 16.1 billion expense, as compared to revenues for Ps. 46.6 billion during the same period of 2012. This variation was primarily due to the combined effect of a Ps. 34.6 billion decrease in the accrued amount of IEPS credit, and a Ps. 27.3 billion expense as a result of an update in the valuation method of fixed assets as of December 31, 2013, mainly located in the Integral Burgos asset.

Evolution of Operating Income (Loss) (Ps. MM)

189,845 185,880 (11,108) 7,143

4Q12 Total Sales Cost of Sales 4Q13

-2.1%

202,195

136,481

(3,965)

(62,741)

(464) 1,457

4Q12 Gross income Other revenues(expenses)

Transportationand distribution

expenses

Administrativeexpenses

4Q13

-32.5%

PEMEX


Financing (Cost) Result

During the fourth quarter of 2013, the financing result recorded a positive variation as compared to the same period in 2012, primarily due to a Ps. 7.2 billion reduction in interest expense and a Ps. 6.1 billion increase in interest income.

Exchange Rate Variation

During the fourth quarter of 2013, the foreign exchange loss increased by Ps. 1.7 billion, due to exchange rate fluctuations and financing activities.

Taxes and Duties During the fourth quarter of 2013, taxes and duties paid decreased by 3.9%, or Ps. 8.3 billion, primarily due to a 4.7% decrease in the price of the Mexican crude oil basket.

Evolution of Taxes and Duties (Ps. MM)

Taxes and Duties6 (Ps. MM)

Net Income (Loss) During the fourth quarter of 2013, PEMEX recorded a net loss of Ps. 77.5 billion. This was

primarily due to:

a 2.4% decrease in the price of regular gasoline in the U.S. Gulf of Mexico, which directly affected PEMEX’s gasoline sale price; and

a Ps. 27.3 billion expense, as a result of an update in the valuation method of fixed assets as of December 31, 2013, which were located primarily in the Integral Burgos Asset.

6 Income tax and others during the fourth quarter of 2013 amounted to Ps. (223) million.

212,118 204,815

1,113 1,731 1,415

214,646 206,323

4Q12 4Q13

Income Tax andother

Crude Oil IncomeTax

HydrocarbonsExtraction Dutiesand other

214,646 206,323

(7,303) 617 (1,638)

4Q12 HydrocarbonsExtraction Duties

and other

Crude Oil IncomeTax

Income Tax andother

4Q13

PEMEX


Evolution of Net (Loss) Income 4Q12 vs 4Q13

(Ps. MM)

Comprehensive Income (loss)

During the fourth quarter of 2013, other comprehensive income totaled Ps. 173.6 billion, as a result of the difference between the discount rate used for the calculation of the net cost of employee benefit at the close of fiscal year 2012 (6.90%) and the discount rate used in 2013 (8.45%).

(28,761)

(77,474)

(65,714)

12,204 (1,655) (1,872)

8,323

4Q12 Operatingincome (loss)

Financingincome (cost)

Foreignexchange

income (loss)

Profit (loss)sharing

Taxes andDuties

4Q13

(1) Profit (loss) sharing in non-consolidated subsidiaries, affiliates and others.

1

PEMEX


Income Statement from January 1 to December 31, 2013

During 2013, the decrease in international reference prices of crude oil and refined products negatively impacted sales. On the other hand, the decrease in costs was less than the decrease in revenues, due to rising costs that affected the entire industry and to certain fixed costs to which PEMEX was subject. Sales

During 2013, revenues from sales and services decreased by 2.4%, or Ps. 38.7 billion, as compared to sales revenues recorded in 2012, primarily due to:

an 11.0% decrease in exports, mainly due to a 3.3% decrease in the average price of the Mexican crude oil basket from U.S.$101.86 per barrel in 2012, to U.S.$98.54 per barrel in 2013. As well as by a 5.3% decrease in the volume of crude oil exports, due to a rise in domestic processing; and

a 29.4% decrease in fuel oil domestic sales, primarily due to a 11.7% reduction in sales volume and a 10.9% decline in price;

The previous was partially offset by:

a 9.7% increase in domestic sales of gasoline, excluding the accrued amount of IEPS credit7;

a 38.1% increase in domestic sales of gas, mainly due to a 58.7% rise in its price, and a 2.2% increase in sales volume; and

a 9.3% increase in domestic sales of diesel, mainly driven by a 12.0% increase in its price.

Cost of Sales & Operating Expenses

A 2.2% decrease in the cost of sales was recorded during 2013, as compared to the same period of 2012, primarily due to a 9.7% decline in purchases for resale, due to both, lower international reference prices and a decrease in import volumes of refined products. This decrease was partially offset by a 12.6% increase in operating expenses, and a 30.1% increase, or Ps. 11.5 billion, in the net cost of employee benefits during the period. In addition, distribution and transportation expenses increased by 13.9%, while administrative expenses increased by 10.1%. During 2013, the net cost of employee benefits recorded under the cost of sales and under general expenses increased by 19.4% due to adjustments to the actuarial calculation method intended to reflect the current economic and financial environment, as well as adjustments in the seniority level of employees. During 2013, depreciation and amortization increased by 5.5%, or Ps. 7.8 billion, as compared to 2012.

Other Revenues (expenses)

The sum of other revenues and expenses during 2013 represented Ps. 64.5 billion revenue, as compared to revenues for Ps. 209.0 billion during 2012. This decrease was primarily due to the combined effect of a Ps. 119.6 billion decrease in the accrued amount of IEPS credit, and a Ps. 27.3 billion expense that resulted from an update in the valuation method of fixed assets as of December 31, 2013.

Financing (Cost) Result

During 2013, the financing result recorded a positive variation of 40.6%, primarily due to an Ps. 18.9 billion decrease in interest expense, as a result of a decrease in cost of financial derivatives.

7 Including the accrued amount of IEPS credit, domestic sales of gasoline decreased by 14.4%, primarily due to a 3.2% decrease in the average price of regular gasoline in

the U.S. Gulf of Mexico, from U.S.¢290.89 to U.S.¢281.64.

PEMEX


Exchange Rate Variation

During 2013, PEMEX recorded a foreign exchange loss of Ps. 4.0 billion, as compared to an exchange gain of Ps. 44.8 billion in 2012. In addition, the Mexican peso recorded a 0.5% depreciation against the U.S. dollar during 2013, as compared a 7.0% appreciation of the peso recorded during 2012.

Taxes and Duties During 2013, taxes and duties paid decreased by 4.2%, or Ps. 37.8 billion, primarily due to a 3.3% decrease in the price of the Mexican crude oil basket.

Net Income (loss) During 2013, PEMEX recorded a net loss of Ps. 170.1 billion. This was primarily due to:

a decline in the average price of the Mexican crude oil basket;

a decrease in crude oil exports;

a 3.2% decline in the price of regular gasoline in the U.S. Gulf of Mexico; which directly affected PEMEX’s gasoline sale price; and

a 2.0% decrease in sales volume of gasoline.

Comprehensive Income (loss)

During 2013, other comprehensive income totaled Ps. 254.3 billion, as compared to Ps. (376.8) billion in 2012. This increase was primarily a result of the difference between the discount rate used for the calculation of the net cost of employee benefit at the close of fiscal year 2012 (6.90%) and the discount rate used in 2013 (8.45%). As a result, during 2013, PEMEX recorded comprehensive income of Ps. 84.2 billion (U.S.$6.4 billion), as compared to a comprehensive loss of Ps. 374.2 billion in 2012.

PEMEX


Consolidated Balance Sheet as of December 31, 2013

Consolidated Balance Sheet

As of Dec. 31, As of Dec. 31,

2012 2013 Change 2013

(U.S.$MM)

Total assets 2,024,183 2,047,390 1.1% 23,207 156,570

Current assets 318,142 266,914 -16.1% (51,228) 20,412

Cash and cash equivalents 119,235 80,746 -32.3% (38,489) 6,175

Accounts, notes receivable and other 133,010 122,512 -7.9% (10,497) 9,369

Inventories 56,848 56,914 0.1% 67 4,352

Derivative financial instruments 9,050 6,742 -25.5% (2,309) 516

Available-for-sale investments 15,771 17,729 12.4% 1,957 1,356

Investment in securities of non consolidated cos.,

associates and other14,646 16,780 14.6% 2,133 1,283

Property, plant and equipment 1,658,734 1,721,579 3.8% 62,845 131,654

Deferred taxes 1,936 2,493 28.8% 557 191

Restricted cash 2,605 7,702 195.6% 5,096 589

Other assets 12,348 14,195 15.0% 1,847 1,086

Total liabilities 2,295,249 2,232,637 -2.7% (62,612) 170,737

Current liabilities 235,804 259,191 9.9% 23,387 19,821

Short-term debt 114,241 90,677 -20.6% (23,564) 6,934

Suppliers 61,513 106,745 73.5% 45,232 8,163

Accounts and accrued expenses payable 9,316 14,195 52.4% 4,879 1,086

Financial Instruments 6,753 6,284 -6.9% (468) 481

Taxes and duties payable 43,981 41,289 -6.1% (2,691) 3,158

Long-term liabilities 2,059,445 1,973,446 -4.2% (85,999) 150,915

Long-term debt 672,618 750,563 11.6% 77,946 57,398

Employee benefits 1,288,541 1,119,208 -13.1% (169,333) 85,589

Provision for diverse credits 63,803 69,209 8.5% 5,407 5,293

Other liabilities 6,346 7,406 16.7% 1,060 566

Deferred taxes 28,138 27,060 -3.8% (1,078) 2,069

Total equity (271,066) (185,247) -31.7% 85,819 (14,166)

Holding (271,764) (185,750) -31.7% 86,014 (14,205)

Certificates of contribution "A" 49,605 114,605 131.0% 65,000 8,764

Federal Government Contributions 178,731 115,314 -35.5% (63,417) 8,818

Legal Reserve 978 1,002 2.5% 24 77

Surplus donation (0) - -100.0% 0 -

Comprehensive accumulated results (383,338) (129,066) -66.3% 254,272 (9,870)

Retained earnings (accumulated losses) (117,740) (287,606) 144.3% (169,866) (21,994)

From prior years (120,573) (117,740) -2.3% 2,833 (9,004)

For the year 2,833 (169,866) -6095.9% (172,699) (12,990)

Participation of non-holding entities 698 504 -27.9% (195) 39

Total liabilities and equity 2,024,183 2,047,390 1.1% 23,207 156,570

PEMEX

(Ps. MM)

PEMEX


Working Capital As of December 31, 2013, working capital was Ps. 7.7 billion, primarily as a result of:

a decrease of Ps. 51.2 billion, or 16.1%, in current assets, primarily due to a reduction in cash and cash equivalents, as well as in accounts and notes receivable; and

an increase of Ps. 23.4 billion, or 9.9%, in current liabilities, as a result of an increase of Ps. 45.2 billion in suppliers’ liabilities.

Working Capital (Ps. MM)

Debt Total debt increased by 6.9%, or Ps. 54.4 billion. Short-term debt decreased by 20.6%, while long-term debt increased by 11.6%.

Debt (Ps. MM)

(90,677)

(106,745)

(14,195) (41,289)

(6,284)

80,746

122,512

56,914 6,742

7,723

Cash & CashEquivalents

Accounts,Notes

Receivableand Other

Inventories DerivativeFinancial

Instruments

Short-termDebt

Suppliers Accounts andAccruedExpensesPayable

Taxes andDuties

Payable

DerivativeFinancial

Instruments

WorkingCapital2013

Current Assets

Current Liabilities

672,618

241,940 (191,146)

750,563 760,495 667,624

160,530 114,241 90,677 (96,779)

3,308 (80,746) 786,859 841,240 280

81,410 (94,367)

Total Debt2012

FinancingActivities

DebtPayments

ExchangeGain

Others Total Debt2013

Cash & CashEquivalents

Net Debt2013

Net Debt2012

PMI Debt

Petroleos Mexicanos debt

Short-Term

Long-Term

1) Includes Finance Public Works Contracts Program. 2) Includes accrued interests, fees and charges for debt issuance, loss under par and amortized cost.

6.9%

1

2

PEMEX


Debt as of December 31, 2013 (Ps. MM)

Average Life (years)

Investment Activities

Activity 2013

During 2013, PEMEX spent Ps. 333.6 billion (U.S.$26.1 billion)8 in investment activities, which represents 102.2% of the total investment of Ps. 326.3 billion that were programmed for the year. These investments were allocated as follows:

Ps. 287.8 billion to Pemex-Exploration and Production9, Ps. 32.2 billion of which were allocated to exploration;

Ps. 30.1 billion to Pemex-Refining;

Ps. 7.0 billion to Pemex-Petrochemicals;

Ps. 5.4 billion to Pemex-Gas and Basic Petrochemicals; and

Ps. 3.3 billion to Petróleos Mexicanos Corporate.

8 Convenience translation has been made at the established average exchange rate for 2013, of Ps. 12.7677 = U.S.$1.00. 9 Includes maintenance expenditures.

79.0%

20.4%

0.6%

By currency

U.S. dollars

Mexican pesos

Euros 71.9%

28.1%

By rate

Fixed

Floating

7.1

2.5

12.9

USD

MXP

OtherCurrencies

As of December 31, 2012

Average 6.3

5.1

2.5

0.1

USD

MXP

OtherCurrencies

As of December 31, 2013

Average 4.6

PEMEX


Budget 2014

PEMEX expects to invest approximately Ps. 357.5 billion (U.S.$27.7 billion) during 2014. These investments are expected to be allocated as follows:

Ps. 301.7 billion to Pemex-Exploration and Production4, Ps. 33.6 billion of which were allocated to exploration;

Ps. 40.7 billion to Pemex-Refining;

Ps. 5.4 billion to Pemex-Petrochemicals;

Ps. 7.5 billion to Pemex-Gas and Basic Petrochemicals; and

Ps. 2.2 billion to Petróleos Mexicanos Corporate.

Financing Activities 2013

Capital Markets On January 30, 2013, Petróleos Mexicanos issued U.S.$2.1 billion of its 3.50% Notes due in 2023; U.S.$100.0 million of these notes were allocated to the Asian market.

On March 22, 2013, Petróleos Mexicanos reopened Ps. 2.5 billion of its Certificados Bursátiles (publicly traded notes) due 2017, at 28 days floating TIIE (Mexican Interbank Interest Rate) plus 18 basis points.

On June 25, 2013, Petróleos Mexicanos reopened Ps. 2.5 billion of its Certificados Bursátiles originally issued in November 2012, due 2017 at 28 days floating rate TIIE plus 3 basis points.

On July 18, 2013, Petróleos Mexicanos issued the following four series of securities for an aggregate amount of U.S.$3.0 billion:

i) U.S. $1.0 billion of its 3.50% Notes, at a fixed rate, due on July 18, 2018; ii) U.S. $1.0 billion of its 4.875% Notes, at a fixed rate, due on January 18,

2024; iii) U.S. $500 million of its Notes bearing interest at a floating rate 3-month

LIBOR (London Interbank Offered Rate) plus 202 basis points, and maturing on July 18, 2018; and

iv) a reopening of U.S. $500 million of its 6.50% Bonds, at a fixed rate, due on June 2, 2041.

On September 19, 2013, Petróleos Mexicanos issued U.S.$400 million of its 2.83% Notes at a fixed rate, due on February 15, 2024. These are structured bonds guaranteed by the U.S. Ex-Im Bank.

On September 19, 2013, Petróleos Mexicanos issued Ps. 5 billion of its Certificados Bursátiles due on February 28, 2019, at 28 days floating TIIE rate plus six basis points.

On September 26, 2013, Petróleos Mexicanos issued Ps. 10.4 billion of its Certificados Bursátiles due on September 12, 2024 at a fixed rate of 7.19%.

On September 30, 2013, Petróleos Mexicanos issued U.S.$750 million bearing interest at a floating rate of LIBOR (London Interbank Offered Rate) plus 43 basis points, and maturing on February 15, 2024. These are also structured bonds guaranteed by the U.S. Ex-Im Bank.

On October 24, 2013, Petróleos Mexicanos issued U.S.$350 million of its 2.29% Notes, at a fixed rate, due on February 15, 2024. These are also structured bonds guaranteed by the U.S. Ex-Im Bank.

On November 27, 2013 Petróleos Mexicanos issued €1.3 billion of its 3.125% Notes due 2020.

On December 11, 2013 Petróleos Mexicanos issued Ps. 9.6 billion of its Certificados Bursátiles in reopenings of previous issuances:

i) Ps. 1.1 billion due on February 28, 2019 at 28 days floating TIIE rate plus 6 basis points.

ii) Ps. 8.5 billion due on September 12, 2024 with a 7.19% coupon. The proceeds from these placements will be used to finance investment projects and for debt refinancing.

PEMEX


COPF During 2013, Petróleos Mexicanos obtained U.S.$234.3 million through the Financed Public Works Contracts program (COPF) of Pemex-Exploration and Production. These contracts are used for the exploitation of natural gas fields in the Burgos basin.

Liquidity Management

As of December 31, 2013, Petróleos Mexicanos holds liquidity management credit lines for U.S.$2.5 billion and Ps. 10.0 billion as follows:

U.S.$1.25 billion due on October 2017;

U.S.$1.25 billion due on December 201610; and

Ps. 10 billion due on December 2014. As of December 31, 2013, U.S.$135 million were disbursed, as a result, 95.9% of these lines are still available to PEMEX.

Financing Activities 2014

Capital Markets On January 23, 2014, Petróleos Mexicanos issued the following four series of securities for an aggregate amount of U.S.$4.0 billion:

i) U.S.$500 million of its 3.125% Notes due on 2019; ii) a reopening of U.S.$500 million of its 4.875% Notes, due on January 18, 2024;

and iii) U.S.$3.0 billion of its 6.375% Notes, due 2045.

Total demand was approximately ten times the original amount announced to be issued of U.S.$3.0 billion, representing an all-time record demand from the international markets.

On January 30, 2014, Petróleos Mexicanos issued Ps. 12.5 billion of its Certificados Bursátiles as follows:

i) Ps. 3.5 billion, denominated in UDIs (Investment Units) due in 2026, at a 3.94% rate;

ii) a reopening of Ps. 2.0 billion due on February 28, 2019 , at 28 days floating TIIE rate plus six basis points; and

iii) a reopening of Ps. 7.5 billion due on September 12, 2024, at a 7.19% rate.

10 On December 11, 2013, Petróleos Mexicanos entered into a 3-year syndicated revolving credit facility for U.S.$1.25 billion, priced at LIBOR plus 80 basis points. This credit facility replaced the facility that expired in November 2013.

PEMEX


Consolidated Statements of Cash Flows

2012 2013 2013

(U.S.$MM)

Operating Activities

Net income (loss) 2,600 (170,058) -6639.5% (172,659) (13,005)

Items related to investing activities 153,183 193,390 26.2% 40,207 14,789

Depreciation and amortization 140,538 148,492 5.7% 7,954 11,356

Impairment of properties, plant and equipment - 25,609 0.0% 25,609 1,958

Unsuccessful wells 13,842 12,498 -9.7% (1,345) 956

Retirement of property, plant and equipment 734 14,700 1904.0% 13,966 1,124

Profit (loss) from sale of fixed asset - (768) 0.0% (768) (59)

Realized profit (loss) net by investments available for sale - (279) 0.0% (279) (21)

Profit sharing in non-consolidated subsidiaries and affiliates (4,798) (707) 85.3% 4,091 (54)

Dividends received (686) (914) -33.3% (228) (70)

Effects of net present value of reserve for well

abandonment3,553 (5,240) -247.5% (8,793) (401)

Activities related to financing activities 6,737 40,722 504.4% 33,984 3,114

Amortization of primes, discounts, profits and debt

issuance expenses1,560 (1,891) -221.2% (3,451) (145)

Interest expense (income) 45,739 39,304 -14.1% (6,435) 3,006

Unrealized loss (gain) from foreign exchange fluctuations (40,562) 3,308 108.2% 43,870 253

Subtotal 162,521 64,053 -60.6% (98,468) 4,898

Funds provided by (used in) operating activities 50,809 126,284 148.5% 75,474 9,657

Financial instruments for negotiation 1,919 1,840 -4.1% (79) 141

Accounts and notes receivable 22,598 5,401 -76.1% (17,197) 413

Inventories (11,829) (67) 99.4% 11,762 (5)

Other assets (7,679) (12,906) -68.1% (5,227) (987)

Accounts payable and accrued expenses (2,579) 4,879 289.2% 7,458 373

Taxes paid (21,790) (2,691) 87.6% 19,098 (206)

Suppliers 8,200 45,232 451.6% 37,031 3,459

Provision for diverse credits 1,245 8,188 557.5% 6,943 626

Employees benefits 61,583 78,043 26.7% 16,460 5,968

Deferred taxes (860) (1,635) -90.2% (775) (125)

Net cash flow from operating activities 213,330 190,337 -10.8% (22,994) 14,556

Investing activities - - 0.0% - -

Acquisition of property, plant and equipment (197,509) (245,628) -24.4% (48,119) (18,784)

Exploration expenses (1,828) (1,439) 21.3% 389 (110)

Sale of investments available for sale - 2,870 0.0% 2,870 219

Net cash flow from investing activities (199,337) (244,196) -22.5% (44,859) (18,674)

Cash needs related to financing activities 13,993 (53,860) -484.9% (67,853) (4,119)

Financing activities

Equity increase (decrease) due to the Federal Government - 66,583 0.0% 66,583 5,092

Retirement of contributions by the Federal Government - (65,000) 0.0% (65,000) (4,971)

Loans obtained from financial institutions 377,896 236,955 -37.3% (140,941) 18,121

Amortization of loans (341,864) (191,146) 44.1% 150,718 (14,618)

Interest paid (46,589) (37,133) 20.3% 9,456 (2,840)

Net cash flow from financing activities (10,557) 10,259 197.2% 20,816 785

Net Increase (decrease) in cash and cash equivalents 3,436 (43,601) -1368.8% (47,037) (3,334)

Effect of change in cash value 822 5,112 521.9% 4,290 391

Cash and cash equiv. at the beginning of the period 114,977 119,235 3.7% 4,258 9,118

Cash and cash equivalents at the end of the period 119,235 80,746 -32.3% (38,489) 6,175

Change

PEMEX

As of December 31,

(Ps. MM)

PEMEX


Other Relevant Information

Union Labor Contract Agreement

On July 29, 2013, Petróleos Mexicanos and the Petroleum Workers’ Union signed the Union Labor Contract Agreement for 2013-2015. The agreement reaffirms PEMEX’s commitment to improve working conditions and to increase productivity, and considers increases of 3.99% and 1.98% in wages and benefits, respectively.

Repsol – YPF Agreement

On February 25, 2014, Repsol’s Board of Directors approved an agreement with the Government of Argentina where, the latter, agrees to compensate with U.S.$5.0 billion the expropriation of 51% of YPF’s shares. In addition, Repsol’s Board of Directors approved to submit to the General Shareholders Meeting the ratification of the agreement.

Energy Reform In July and August 2013, separate energy reform bills were submitted to the Mexican

Congress by President Enrique Peña Nieto, by the Partido Acción Nacional (National Action Party, or PAN) and by the Partido de la Revolución Democrática (Democratic Revolution Party, or PRD). Both the bill submitted by President Peña Nieto and the bill submitted by the PAN proposed certain amendments to the Political Constitution of the United Mexican States. The bill submitted by the PRD contemplates amendments to certain laws and regulations but did not propose amending the Political Constitution of Mexico. On December 12, 2013, the Mexican Congress approved amendments to Articles 25, 27 and 28 of the Political Constitution of the United Mexican States, which were subsequently approved by a majority of Mexico’s state legislatures and by President Enrique Peña Nieto. On December 20, 2013, these amendments were published in the Official Gazette of the Federation as the Decree that Amends and Supplements Various Provisions of the Political Constitution of the United Mexican States relating to energy matters (the “Energy Reform Decree”). These amendments became effective on December 21, 2013. The Energy Reform Decree includes transitional articles that set forth the general framework for secondary legislation; within 120 days of the Energy Reform Decree taking effect, the Mexican Congress shall enact laws and regulations to implement the constitutional amendments. The main points of the Energy Reform Decree are as follows:

Ownership of hydrocarbons: o Solid, liquid and gaseous hydrocarbons located in the subsoil of Mexico remain

the property of the Mexican nation.

Private Sector Participation: o The Mexican Government will carry out exploration and extraction of

hydrocarbons in Mexico through assignments to “productive state-owned companies” or through agreements with such productive state-owned companies or with private sector companies. As part of the secondary legislation to be adopted, the Mexican Congress must make the necessary adjustments to the legal framework regulating the contractual regime for exploration and production activities, which may include the creation of licenses, service contracts, profit-sharing contracts and production-sharing contracts.

Productive state-owned company: o On December 21, 2015, Petróleos Mexicanos will be converted from a

decentralized public entity to a productive state-owned company pursuant to the applicable secondary legislation to be issued.

o Petróleos Mexicanos’ corporate purpose will be to create economic value

PEMEX


while adhering to principles of equity as well as social and environmental responsibility, and it will be granted technical, managerial and budgetary autonomy, subject to certain controls.

o Petróleos Mexicanos’ Board of Directors will be composed of five independent members and five members of the Federal Government, including the Ministry of Energy who will preside over it.

o During the two-year transition period, Petróleos Mexicanos will be entitled to be awarded the allocations and agreements.

Request for assignments: o On March 21, 2014, Petróleos Mexicanos shall request that the Ministry of

Energy assign to it certain exploration and production areas based on certain criteria, including, but not limited to its financial and operational capabilities.

o The Ministry of Energy, with the technical assistance of the National Hydrocarbons Commission, shall issue a corresponding decision within 180 days after the date on which Petróleos Mexicanos submitted its request.

o Areas that were either not requested by Petróleos Mexicanos, or would not be assigned to it, will be subject to a bidding process open to participation by third parties.

Mexican Government pipeline system: o The National Center of Natural Gas Control, a decentralized public entity of

the Mexican Government, will be created to own and operate the national gas pipeline system and storage infrastructure. Pursuant to the applicable secondary legislation, Petróleos Mexicanos and its subsidiary entities will transfer and assign to the National Center of Natural Gas Control the assets necessary for it to manage this system and infrastructure.

Regulatory oversight and authority: o The Ministry of Energy will be granted the authority to design issue permits for

oil treatment; refining; natural gas processing; petrochemicals production; and transport, storage and distribution of hydrocarbons and petroleum products. In addition, the Ministry of Energy will define exploration and exploitation areas; as well as the type of contract awarded (services, profit sharing, production sharing and licenses, or a combination of the previous). It will also define the technical design of each contract.

o The Ministry of Finance will define the economic and fiscal terms of each contract.

o The National Hydrocarbons Commission will carry out public tenders according to the terms established by the Ministry of Energy and the Ministry of Finance.

o The Energy Regulatory Commission will regulate and grant storage, transport and pipeline distribution permits.

o The Agency of Industrial Safety and Environmental Protection in the Hydrocarbons Sector, which will be created, will regulate and supervise operational safety and environmental protection on the hydrocarbons sector.

Mexican Petroleum Fund: o The Mexican Petroleum Fund, which will be created, will manage and

distribute income from assignments and contracts, such as duties and royalties, but not taxes.

Fiscal Regime PEMEX’s fiscal regime will remain unmodified during 2014.

Exports of Olmeca and Istmo Crude

In order to diversify and strengthen the presence of Mexican crude oil in the international market, PEMEX will begin exporting Olmeca crude oil to Europe and Istmo crude oil to the west coast of the United States and to the Middle East in 2014. The shipments will be distributed from PEMEX’s Salina Cruz seaport in Oaxaca.

PEMEX


Agreements During 2013, several agreements and memorandums of understanding were signed with different development and export banks, as well as with several oil and gas companies. For more information on the agreements signed during the year, please refer to prior Unaudited Financial Results Reports for 2013, which are available at: http://www.ri.pemex.com/index.cfm?action=content&sectionID=19&catID=12168. On January 15, 2014, Petróleos Mexicanos signed a technology-transfer agreement with the following shipbuilders: Barreras (Spain), Talleres Navales del Golfo (Veracruz), Servicios Navales Industriales (Sinaloa), Servicios Portuarios (Baja California) y Fundiciones Rice (Sinaloa). The purpose of the agreement is to share experiences in order to development the capabilities of Mexico’s shipbuilders and the related industry. On January 24, 2014, Petróleos Mexicanos signed a cooperation agreement with the Russian oil and gas company Lukoil to cooperate on matters related to exploration and production activities.

Centralized Procurement Division

On January 17, 2014, Petróleos Mexicanos’ Board of Directors approved the creation of a Centralized Procurement Division (“Division”), which will centralize the purchases of goods, services and operating leases and public works for PEMEX. The Division is expected to improve the purchasing power of the company, thereby generating savings and developing standardized, streamlined, timely and more transparent processes. Mr. Arturo Henriquez Autrey, the current President of Pemex Procurement International (“PPI”) will lead the new Division, which will be staffed with current PEMEX personnel, meaning that there will be no increase in the workforce.

Industrial Safety During the fourth quarter of 2013, the accumulated frequency index for PEMEX personnel amounted to 0.37, which represented a 34.2% decrease as compared to the same period of 2012, and is 21% lower than the Oil & Gas Producers registered standard of 0.474. As a result, the accumulated serious-injuries index decreased 24% as compared to the fourth quarter of 2012. As of December 31, 2013, the accumulated frequency index decreased 5.7% as compared to 2012, as a result of the implementation and continuity of safety campaigns such as Fall Prevention, Hand, Maneuver and Lifting Safety.

LPG Subsidy In recent years, price control mechanisms for liquefied petroleum gas (“LPG”) have been implemented through governmental decrees which are published in the Official Gazette of the Federation. This mechanism fixes maximum first-hand sales prices and end-users prices. On January 1, 2013, a decree set the national weighted average price for the public sale of LPG at Ps. 10.25 per kilogram for January 2013. Since then, twelve decrees have been published, one for each month of the year, establishing monthly increases in the public sale prices. As a result, from January through October, LPG prices increased by Ps. 0.07 cents per kilogram each month and subsequently increased by Ps. 0.09 cents per kilogram for each of the months of November and December. The LPG subsidy represented an economic impact for PEMEX of Ps. 4.769 billion during 2013.

Director General of Pemex-Exploration and Production

On February 7, 2014, Mr. Carlos Morales Gil submitted his resignation as Director General PEP. Mr. Gustavo Hernández García, formerly Deputy Director of Planning of PEP, will replace Mr. Morales Gil as Acting Director General of PEP.

http://www.ri.pemex.com/index.cfm?action=content&sectionID=19&catID=12168

PEMEX


If you would like to be included in our distribution list, please access www.ri.pemex.com and then “Distribution List.”

If you would like to contact us, please call or send an email to [email protected].

Telephone: (52 55) 1944 9700

Voice mail: (52 55) 1944 2500 ext. 59412

Síguenos en @PEMEX_RI

Rolando Galindo Galvez Celina Torres Uribe David Ocañas Jasso

[email protected] [email protected] [email protected]

Ana Lourdes Benavides Escobar Mariana López Martínez Alejandro López Mendoza

[email protected] [email protected] [email protected]

Variations

Cumulative and quarterly variations are calculated comparing the period with the same one of the previous year; unless specified otherwise.

Rounding

Numbers may not total due to rounding.

Financial Information

Excluding budgetary and volumetric information, the financial information included in this report and the annexes hereto is based on unaudited consolidated financial statements prepared

in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”), which PEMEX has adopted effective January 1, 2012.

Information from prior periods has been retrospectively adjusted in certain accounts to make it comparable with the unaudited consolidated financial information under IFRS. For more

information regarding the transition to IFRS, see Note 23 to the consolidated financial statements included in Petróleos Mexicanos’ 2012 Form 20-F filed with the Securities and Exchange

Commission (SEC) on April 30, 2013. EBITDA is a non-IFRS measure. We show a reconciliation of EBITDA to net income in Table 33 of the annexes to this report. Budgetary information

is based on standards from Mexican governmental accounting; therefore, it does not include information from the subsidiary companies of Petróleos Mexicanos.

Foreign Exchange Conversions

Convenience translations into U.S. dollars of amounts in Mexican pesos have been made at the established exchange rate, at December 31, 2013, of Ps. 13.0765 = U.S.$1.00. Such

translations should not be construed as a representation that the Mexican peso amounts have been or could be converted into U.S. dollars at the foregoing or any other rate.

Fiscal Regime

Since January 1, 2006, PEMEX has been subject to a new fiscal regime. Pemex-Exploration and Production’s (PEP) tax regime is governed by the Federal Duties Law, while the tax

regimes of the other Subsidiary Entities continue to be governed by Mexico’s Income Tax Law. The most important duty paid by PEP is the Ordinary Hydrocarbons Duty (OHD), the tax

base of which is a quasi-operating profit. In addition to the payment of the OHD, PEP is required to pay other duties.

Under PEMEX’s current fiscal regime, the Special Tax on Production and Services (IEPS) applicable to gasoline and diesel is regulated under the Federal Income Law. Pemex – Refining

(PR) is an intermediary between the Secretary of Finance and Public Credit (SHCP) and the final consumer; PR retains the amount of IEPS and transfers it to the Federal Government. The

IEPS rate is calculated as the difference between the retail or “final price,” and the “producer price.” The final prices of gasoline and diesel are established by the SHCP. PR’s producer

price is calculated in reference to that of an efficient refinery operating in the Gulf of Mexico. Since 2006, if the “final price” is lower than the “producer price”, the SHCP credits to PR the

difference among them. The IEPS credit amount is accrued, whereas the information generally presented by the SHCP is cash-flow.

Hydrocarbon Reserves

Pursuant to Article 10 of the Regulatory Law to Article 27 of the Political Constitution of the United Mexican States Concerning Petroleum Affairs, (i) PEMEX's reports evaluating

hydrocarbon reserves shall be approved by the National Hydrocarbons Commission (NHC); and (ii) the Secretary of Energy will register and disclose Mexico's hydrocarbon reserves based

on information provided by the NHC. As of the date of this report, this process is ongoing.

As of January 1, 2012, the Securities and Exchange Commission (SEC) changed its rules to permit oil and gas companies, in their filings with the SEC, to disclose not only proved

reserves, but also probable reserves and possible reserves. In addition, we do not necessarily mean that the probable or possible reserves described herein meet the recoverability

thresholds established by the SEC in its new definitions. Investors are urged to consider closely the disclosure in our Form 20-F and our annual report to the Mexican Banking and

Securities Commission, available at http://www.pemex.com/.

Forward-looking statements

This report contains forward-looking statements. We may also make written or oral forward-looking statements in our periodic reports to the Comisión Nacional Bancaria y de Valores

(CNBV) and the SEC, in our annual reports, in our offering circulars and prospectuses, in press releases and other written materials and in oral statements made by our officers, directors

or employees to third parties. We may include forward-looking statements that address, among other things, our:

drilling and other exploration activities;

import and export activities; and

projected and targeted capital expenditures and other costs, commitments and revenues; and

liquidity.

Actual results could differ materially from those projected in such forward-looking statements as a result of various factors that may be beyond our control. These factors include, but are

not limited to:

changes in international crude oil and natural gas prices;

effects on us from competition;

limitations on our access to sources of financing on competitive terms;

significant developments in the global economy;

significant economic or political developments in Mexico;

developments affecting the energy sector; and

changes in our regulatory environment, including tax and environmental regulations.

Accordingly, you should not place undue reliance on these forward-looking statements. In any event, these statements speak only as of their dates, and we undertake no obligation to

update or revise any of them, whether as a result of new information, future events or otherwise. These risks and uncertainties are more fully detailed in PEMEX’s most recent Form 20-F

filing with the SEC (www.sec.gov), and the PEMEX prospectus filed with the CNBV and available through the Mexican Stock Exchange (www.bmv.com.mx). These factors could cause

actual results to differ materially from those contained in any forward-looking statement.

PEMEX

Petróleos Mexicanos, its subsidiary entities and its subsidiary companies (PEMEX) make Mexico’s national oil and gas company. Created in 1938, it is the exclusive producer of Mexico’s

oil and gas resources. The operating subsidiary entities are Pemex - Exploration and Production, Pemex - Refining, Pemex - Gas and Basic Petrochemicals and Pemex - Petrochemicals.

The principal subsidiary company is PMI Comercio Internacional, S.A. de C.V., Pemex’s international trading arm.

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